Two Separate Memoranda of Understanding (MoU) signed between Ministry of Railways and Governments of Kerala and Andhra Pradesh for “Formation of Joint Venture Companies for Development of Railway Infrastructure in these States

News and Press Release - Dated:- 27-1-2016 - Press Information Bureau Government of India Ministry of Railways 27-January-2016 17:27 IST To Work In Collaboration With States For Developing Railway Infrastructure In The Country Is Our Priority : Suresh Prabhu Relationship With States is Beyond a Project And Not A Transactional Relationship In the august presence of Minister of Railways, Shri Suresh Prabhakar Prabhu two separate Memoranda of Understandings (MoUs) between Ministry of Railways and S .....

as on behalf of Government of Andhra Pradesh Shri P. K. Srivastava OSD/Govt. of A.P. and Shri Sivasankar M./Secretary, Transport Department, Govt. of Kerala signed the MoUs. The MoUs were signed in the background of Railway Minister s Budget announcement regarding setting up of Joint Ventures with States for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects. Speaking on the occasion, Union Minister of Railways Sh .....

s and others. Railway Minister thanked those 17 State Governments who have consented for formation of Joint Venture Companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States. Emphasizing the need of working together, Railway Minister said that the relationship with the State Governments is beyond a project and not a transactional relationship. Railways has introduced decentralized decision making formula which is completely remarka .....

h despite this Railways have been the cheapest mode of transportation. He said that Rail and Road will have to work together and Indian Railways is also committed to develop a Multi-Modal Transport Cooperation. Shri Suresh Prabhu further said that today s MoUs are very important MoUs which will help in developing infrastructure in the States of Andhra Pradesh and Kerala. Railway Minister said that Railways have a large shelf of ongoing New Line, Gauge Conversion and Doubling projects needing abo .....

on earlier occasions also Memoranda have been signed for formation of JV companies with Maharashtra and Odisha. The MoUs envisages formation of a Joint Venture company having 51% stakes of state Govt and 49% stakes of Ministry of Railways. Thus, the JV company shall be fully owned by the Government. The company will primarily identify projects and possible financing avenues in addition to Govt of India and the state Govt. After finances for a project are tied up, a project specific SPV or specia .....

zonal apportionment of revenue. Member Staff, Railway Board also stated that the most important aspect of the MoU is that the ownership of the land shall vest with the SPVs which is a departure from previous practice. This will give financial leverage to the company to exploit commercial potential of the land. Vote of Thanks was proposed by Shri Laj Kumar, Additional Member, Works, Railway Board. Silent Features of the MoU:- · In view of the growing demands for railway lines in various st .....

aft MoUs were sent to these State Governments and discussions were also held with them to clarify various provisions of the MoU. · MoUs have already been signed by the Ministry of Railways with the State Governments of Odisha and Maharashtra. · Today, MoUs are being signed with the State Governments of Kerala and Andhra Pradesh. This signing of MOU is going to be a stepping stone for formation of JV companies. · The MoU envisages formation of a Joint Venture companies having .....

nies shall be mandatory stake holders with minimum 26% shares in the SPVs. · The ministry of Railways will sign a concession agreement of 30 years with the project SPV for safe and sound operation, revenue sharing and providing technical & marketing logistics to the SPV. The revenue sharing shall be based on already established formula being used for inter zonal apportionment of revenue. · The most important aspect of this MoU is that the ownership of the land shall vest with t .....

ays has been playing a major role in national integration by connecting the remotest places and bringing people closer to each other. Railways receive a large number of demands for network expansion as a railway line acts as an engine of growth for the area it serves. · However, Railways have a large shelf of ongoing New Line, Gauge Conversion and Doubling projects needing about ₹ 3.5 lakh crores to complete. We have been trying to meet the aspirations of public within limited avail .....